Rent Vs Buy

The age old questions should I rent or purchase a home. It really comes down to home comfortable you feel in to make this huge step in your life. Remember you don’t spend 100, 200, or 500 thousand dollars every day and you want to make sure that it feels right. 

All logic says that in this real estate market, especially with Schaumburg homes being at record lows, interest rates lower than ever, and massive amounts of inventory every it’s an easy yes. But, what you really need to do is sit back and evaluate your personal situation. Just because it is the right time to purchase a home does not mean it is the right time for you to purchase a home.

Start first by calculating how much rent is vs. how much your mortgage would be. It is amazing with homes prices and mortgage rates being so low and rental rates being so high it would shock you to see that some Schaumburg homes for sale may actually be cheaper to purchase than rent.  The rental market is almost 15 percent higher that it was the same time two years ago.  Also you need to look at the tax deductions you will get when you purchase a Schaumburg home. Did you know that you can write off all the interest on your loan? Talk to your account to see how much that can save you in taxes per year.  The main concern is do you want to make the commitment? Purchasing a home weather it’s a regular sale, short sale, or foreclosure is an investment that you need to be ready for. I strongly adivse against purchasing a Schaumburg home if you do not want to commit to staying put in an area, or if you are unsure about your own personal situation. 

As you see there a quite a few factors that come into play when making this type of decision. First you should consult a mortgage professional to get an idea of what your numbers will look like. Many people think they can’t get a loan. When in fact people can get loans that should be getting loans! If you  make a solid income, don’t have a ton of debt, can put down at least 3.5 percent, and have a credit score above 620 you may be better off than you think. If you have any questions about purchasing a Schaumburg home feel free to call me at 847-477-9474 or go to my website www.AaronWittenstein.com

What is a Short Sale?

A short sale is a sale of real estate in which the sale profits fall short of the balance owed on the property's loan. This occurs when a home owner cannot pay the mortgage loan on their property, but the bank decides that selling the property at a moderate loss is better than pressing the borrower for the full home value. Both parties consent to the short sale process, because it allows them to avoid foreclosure, which involves hefty fees for the bank and poor credit report outcomes for the borrowers. This agreement does not necessarily release the borrower from the obligation to pay the remaining balance of the loan.

Purchasing a foreclosure or a short sale home can mean that you get a deal under market value.  This does not mean that the home will be in tip top shape and can result in homes that need work.  Distressed homeowners typically do not have extra money to maintain the home that they have lived in for years which can lead to costly repairs for the buyer.  Make sure to always have the home professionally inspected before purchasing a home of this nature to ensure that all disclosures for repairs are made.

With the economy constantly changing foreclosures and short sales are becoming more available to home buyers.  It is always within the interest of the buyer to have a Realtor working on their behalf.  The Schaumburg, Illinois housing market is a buyers market and sellers are willing to make deals to get property sold.   

Whether you are looking to purchase a home or sell a home work with a top Realtor in Schaumburg to get the job done.